although there is an intent to cluster ownership,
some City officials argue that the method being
followed by the CoJ is unclear. A willing buyer-willing
seller approach has been used thus far and there are
attempts at consolidation of the purchased sites. It
is however not clear as to how these consolidated
sites will be used. In order to make a significant
impact, land needs to be built into a portfolio that
is both traded in the development process and also
utilised for public sector-led development (interview
with Alan Dinnie, 29 July 2016). In the absence of
an economic strategy or sufficient economic analysis
and data, the land strategy is at a disadvantage. The
theory as articulated in the TOD programme is to
capture value in close proximity to transit centres
but it remains unclear as to how the City intends to
do this.
The approach to purchase land has also been
controversial. The initial approach to purchase was
undertaken post the announcement of the COF,
but without sufficient transparency (as reported in
the media). Although the City took this approach to
prevent a spike in the property market, this meant
that homeowners were uninformed about the
project. The City was obliged to apologise due to
the negative publicity (Cox 2014a).
There is a gap in the plan around the status and utility
of state-owned land, be it provincially or nationally
owned. The political clout of Johannesburg’s
politicians can be utilised in order to garner some
of this land and use it more efficiently to support
broader developmental objectives (interview with
Tanya Zack, 26 August 2016). For example, the Park
Station Precinct cannot be activated without the
cooperation of the Passenger Rail Agency of South
Africa (PRASA). This is not the only example, and
the City needs to proactively engage with other
government landowners. Equally concerning is the
push towards densification without a clear strategy
in terms of educational facilities. The inner city,
despite its growth in affordable housing options,
clearly lacks sufficient educational opportunities
for its residents. Indeed, the provision of appropriate
social infrastructure could be a significant
intervention to shape market demand. Educational
facilities specifically are a fundamental component
of a good neighbourhood. In order to support and
promote densification, the City needs to engage more
actively with the Gauteng Department of Education
to guarantee that there is the delivery of sufficient
educational facilities. It would be worth considering

27

Transit corridors & the private sector

incentives for educational facilities prepared to
locate to neighbourhoods in the Corridors.
There is an opportunity for the City to use its land
more effectively. If City-owned land is strategically
located or sufficiently large, it could play an
important role in providing the public goods that
create demand and actively support neighbourhood
development and transit hubs.

3.9. Two Case Studies: Orange Grove and
Milpark
The Corridors comprise multiple nodes, many of
which are extremely diverse in terms of residents,
urban form and development opportunities. The
disparity in the nodes highlights the need for
detailed analysis of the property market in each
node, as well as interested developers, opportunities
for commercial development and partnerships. This
distinctiveness is evident in the cases of Orange
Grove and the Milpark Precinct.

3.9.1. Orange Grove
The neighbourhood of Orange Grove contains
primarily low-density housing stock, which presents
the opportunity for densification and the provision
of affordable housing. It is also situated along a
section of Louis Botha Corridor that accommodates
small retail businesses and a mix of formal and
informal businesses. Orange Grove is interesting in
a real estate context for a number of reasons:
• It was selected by the City as a Special
Development Zone (SDZ) case study and
pilot in the purchase of land.
• The dynamics around the purchase of
properties in Orange Grove as part of the
COF project has elicited strong objections by
community members.
• The City is spearheading a large mixed-use
housing project at Paterson Park in Orange
Grove, which is one of the initial sites for
the Corridors.
• The Louis Botha Corridor provides a distinct
perspective on real estate and the private
sector. It already has a diverse property
market with important opportunities for
inclusion. It is a critical route connecting
Alexandra to the inner city, hence a strategic
transport corridor.
However, the City’s initial steps into Orange

Grove have caused controversy and concern amongst the
residents. The causes of the panic have been twofold: the
City’s large-scale purchase of land in the area; and the
proposed Paterson Park development, which is targeting a
substantial number of social housing units.15
The initial scope of this research was to establish what
new developments were underway in Orange Grove as a
result of the implementation of the COF and the BRT. It was
ascertained through the research process that a number of
small new developments were underway but not at a scale
that would allow for analysis. Some of the developments
were in the vicinity of Orange Grove but not directly in the
neighbourhood. Interviews undertaken suggest that there
is an interest in the development of affordable housing, that
the land market consists of largely small landowners with
no real institutional presence, and that there is a growing
trend of informal densification. This being the case, any
large-scale development would require substantial land
consolidation in order to achieve scale. Despite its good
location, there has been a slow process of decline in parts
of Orange Grove.
The land purchase process undertaken by the City has
led to a rise in property prices. While there are long-term
residents of Orange Grove who are reluctant to sell their
properties, there have also been residents who are willing
to move and felt that the City offered market-related prices.

3.9.2. The Milpark Precinct
The Milpark Precinct on the Empire-Perth Corridor is a very
different site, and has already transitioned into a transport
corridor.This site offers opportunities for greater densification
and is positioned for a diverse portfolio of private sector
commercial investment. Milpark is well placed to test the
viability of mixed-income housing developments and to
monitor the spread of student accommodation. It is also a
site of mixed-use developments. Currently, this precinct
has multiple large landowners, including Milpark Hospital,
Lancet Laboratories, the SABC, University of Johannesburg
and University of the Witwatersrand. While there are smaller
sites, there are limited options for smaller developers.
The latest development trends in the area are covered by
the Milpark Urban Design Framework, compiled by Osmond
Lange Architects (interview with Jonathan Manning, 12
August 2016). A review of their work and participant
observation indicated that there were a number of new
developments in the planning phase or underway. These
included the change in ownership of 39 Stanley Avenue and
plans for new residential accommodation. The Imperial site
is also under site preparation and there is evidence of new
student accommodation being constructed in Richmond.
15 F
or more information on this, see Alexandra Appelbaum’s report,
Contestation, Transformation and Competing Visions: a case study
of Orange Grove and Norwood – report 7 in this series.